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DaVita Inc. DVA delivered adjusted earnings per share (EPS) from continuing operations of $3.40 in the fourth quarter of 2025, up 51.8% year over year. The figure surpassed the Zacks Consensus Estimate by 5.1%.
GAAP EPS from continuing operations for the quarter was $2.94, reflecting a decline of 4.9% year over year.
Full-year adjusted EPS was $10.78, reflecting a 11.4% increase from the year-ago period. The figure beat the Zacks Consensus Estimate by 0.7%.
Revenues of $3.62 billion in the fourth quarter increased 9.9% year over year. The figure topped the Zacks Consensus Estimate by 2.7%.
Revenue per treatment (RPT) in the fourth quarter of 2025 was $422.6 million, up 6.8% year over year and 2.9% sequentially. Per management, this was primarily driven by the resolution of aged receivables, normal rate increases and improved yield, a slight improvement in private pay mix after a dip in the third quarter and the typical seasonal impact of flu vaccines.
Full-year revenues were $13.64 billion, reflecting a 6.5% improvement from the year-ago period. The metric topped the Zacks Consensus Estimate by 0.7%.
Shares of this company gained nearly 11.8% in today’s pre-market trading.
DaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues.
The dialysis patient service revenues were $3.39 billion, up 8.9% year over year.
Other revenues were $220.6 million, up 25.7% from the year-ago quarter’s figure.
Per management, the total U.S. dialysis treatments for the fourth quarter were 7,264,520 or 91,608 per day, on average. This represents a per-day decrease of 0.1% on a sequential basis. Normalized non-acquired treatment declined 0.6% year over year in the fourth quarter of 2025.
As of Dec. 31, 2025, DaVita provided dialysis services to around 295,000 patients at 3,242 outpatient dialysis centers, of which 2,657 were U.S. centers while 585 were located across 14 other countries.
During the fourth quarter of 2025, the company acquired one and closed six dialysis centers in the United States. It also acquired three, opened one and closed five dialysis centers outside the United States in the same period.
As of Dec. 31, 2025, DaVita had approximately 66,000 patients in risk-based integrated care arrangements in its Integrated Kidney Care business, representing $5.6 billion in annualized medical spend. The company also had an additional 9,400 patients in other integrated care arrangements.
DaVita Inc. price-consensus-eps-surprise-chart | DaVita Inc. Quote
In the quarter under review, DaVita’s gross profit increased 13.2% year over year to $1.21 billion. The gross margin expanded 98 basis points (bps) to 33.4%.
General & administrative expenses climbed 13.9% year over year to $472.4 million.
Adjusted operating profit totaled $737.9 million, reflecting a 12.7% increase from the prior-year quarter’s level. Adjusted operating margin in the fourth quarter expanded 51 bps to 20.4%.
DaVita exited fourth-quarter 2025 with cash and cash equivalents and short-term investments of $700.7 million compared with $736.5 million at the third-quarter end. Total debt (including the current portion) at the end of fourth-quarter 2025 was $10.27 billion compared with $10.25 billion at the third-quarter end.
Cumulative net cash provided by operating activities at the end of fourth-quarter 2025 was $1.89 billion compared with $2.02 billion a year ago.
During the three months ended Dec. 31, 2025, DVA repurchased 2.7 million shares for $331 million. Subsequent to Dec. 31, 2025, through Feb. 2, 2026, the company has repurchased 1.7 million shares of its common stock for $200 million.
DaVita has initiated its outlook for 2026.
For 2026, DVA expects RPT to reflect growth of 1%-2%, while treatment volume is expected to be flat compared to 2025.
Adjusted EPS from continuing operations for the full year is projected to be in the range of $13.60-$15.00. The Zacks Consensus Estimate currently stands at $12.89.
DaVita ended the fourth quarter of 2025 with better-than-expected results. The uptick in the company’s top line and RPT was encouraging. Solid revenues from both sources and the opening and acquisition of dialysis centers within the United States and overseas were promising. The expansion of both margins bodes well for the stock.
On the earnings call, management announced a strategic clinical partnership with home-care provider, Elara Caring, to establish an end-stage kidney disease-focused offering. This model spans Elara's home health, personal care and hospice service lines and is designed to lower hospitalizations and missed treatment rates while improving the overall patient experience.
However, the per-day decrease in total U.S. dialysis treatments for the fourth quarter on a sequential basis and the year-over-year decline in normalized non-acquired treatment were disappointing.
DVA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are Boston Scientific Corporation BSX, Quest Diagnostics Incorporated DGX and Globus Medical, Inc. GMED.
The Zacks Consensus Estimate for Boston Scientific’s fourth-quarter 2025 adjusted EPS is currently pegged at 78 cents. The consensus estimate for revenues is pegged at $5.27 billion. BSX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has an estimated long-term growth rate of 16.4%. BSX’s earnings yield of 3.7% compares favorably with the industry’s 2.5%.
Quest Diagnostics currently has a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter 2025 adjusted EPS is currently pegged at $2.36. The same for revenues is pegged at $2.75 billion.
Quest Diagnostics has an estimated long-term growth rate of 7.6%. DGX’s earnings yield of 5.6% compares favorably with the industry’s 5.5%.
Globus Medical currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter 2025 adjusted EPS is currently pegged at $1.06. The same for its revenues is pegged at $787.9 million.
Globus Medical has an estimated long-term growth rate of 15.8%. GMED’s earnings yield of 4.4% compares favorably with the industry’s 1.4%.
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This article originally published on Zacks Investment Research (zacks.com).
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